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Employer of Record Indonesia

EoR Indonesia: How to Use Employer of Record to Recruit Indonesian Talent

Employer of Record Services: The Basics

In a world where remote hiring is becoming the norm, hiring Indonesian talent can be difficult if your company is based abroad. This is when it could be worth considering an Employer of Record (EoR) service.

As a form of outsourcing, an Employer of Record Indonesia service provider legally bears all the administrative responsibilities of managing a company’s employees. EoR responsibilities include but are not limited to recruitment, payroll, and work permits.

While the Employer of Record service provider legally holds employment contracts, your company would still have autonomy in terms of day-to-day operations. Your company will still make all the final decisions in business strategies as well as employee management and supervision.

Using an Employer of Record in Indonesia

So, when would be a good time to consider using an Employer of Record service? There are a variety of circumstances when expanding your business abroad where having an EoR service provider would be especially helpful.

You’re looking for a more efficient way to enter the Indonesian market

Establishing a foreign-owned business in Indonesia is costly in time and money. If you were to build a PT PMA to hire Indonesian employees, you’re looking at investing IDR 10 billion in paid-up capital and a timeframe upwards of 6 weeks.

Using an EoR service, your company can hire in Indonesia without registering a company. An EoR service would already have a registered business that can quickly recruit and hire, saving time and money. This is especially useful if you need to expand your workforce in Indonesia quickly when there is higher demand in your business.

You don’t want to worry about the legal responsibilities of hiring

EoR service providers in your target country are knowledgeable about labor laws and policies that are constantly changing. While also making sure your employment affairs are compliant with Indonesian law, your EoR service provider will also make the necessary changes to ensure all your payroll-related activities remain compliant.

Your EoR service provider is also the legal employer of those you hire and bear complete responsibility for your operations in their country, so this mitigates a significant amount of risk for your company.

You’re looking for a simpler recruitment process

Recruiting new employees can be a tedious process, and using an EoR service can heavily simplify it for you through HR outsourcing while you focus on other aspects of your business. Your EoR service provider will handle the recruitment process from start to finish, with your final approval.

employer of record recruitment process

If you’re ready to consider Cekindo as your Employee of Record service provider, here is our full list of EoR services to keep in mind:

Thinking About The Future of Your Business

Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country. Here are some ways Cekindo can help you push farther into the Indonesian market:

  • Set up a company & enter the market on a larger scale if you’re satisfied with how your product or service performs in Indonesia
  • Apply for a work permit (aka a KITAS) if you want to work in Indonesia after you’ve set up your company
  • Tax and accounting services to facilitate financial reporting as well as the payment of income & corporation tax
  • Employee background check

When you’re ready to make the move to hire in Indonesia, do not hesitate to contact a Cekindo consultant to plan your Indonesian debut.

Contact our consultants

Selected Testimonials

  • I am thankful for Cekindo, as they assisted me for several months to obtain my business visa and enter Indonesia. I was in constant contact with valuable consultants the provided me with updated information during this precarious time. Today, my being in Jakarta is not a miracle – it was made possible by Cekindo.

    Gabriel Francois Pierre Hossaert
  • Balev Coporation

    We needed an expert in applying and obtaining respective registrations for our product range in Indonesia, and a renowned German consultancy company in the safety compliance field recommended Cekindo due to their well-developed network in the Asia Pacific. Cekindo’s practical knowledge helped professionally shape and balance the wording of our labels, resulting in full compliance with Indonesian product regulations while taking into account the market and its end users.

    Rumen Myankov
    Balev Corporation
  • Tim Stewart - Photo

    I would like to acknowledge the exceptional service that PT. Cekindo Business International provided to me and my company. I needed to attend a meeting in Jakarta in October 2020 and because of the COVID-19, there were some restrictions with regard to visa application. I made the right decision by consulting with the visa team at Cekindo. The application process was expertly handled. The team ensured the visa was issued well ahead of time for my trip. I would recommend PT. Cekindo Business International to anyone looking for expert help in managing the visa application process.

    Tim Stewart
    Northern Territory Building Consultancy
  • logo-PT-Asia-Victory

    Prior to choosing Cekindo as our business partner in Indonesia, we interviewed and compared several companies. Finally, we chose to cooperate with Cekindo because of its professionalism and quality. Cekindo has assisted us in many ways, from company certification application to KITAS application and financial statement compliance to the fulfillment of other tax obligations in Indonesia. We appreciate the team’s fast response and professionalism in preparing the financial statements, among others.

    Doris Chen
    PT. Asia Victory and PT. Bigger One
  • logo Toaster

    When I joined Toaster, it was already working with Cekindo. But it’s quick to see why Toaster chose Cekindo. Cekindo has been very helpful throughout. Toaster Headquarters is based in London. Indonesian tax laws are not our specialty. Cekindo’s team has helped us to understand Indonesian tax. They are very knowledgeable and dependable, and therefore a huge asset to our company.

    Tsui-Sie Wong

FAQ’s About Employer of Record

How long is the process of establishing Cekindo as an Employer of Record?

As soon as you decide you’d like us to be your Employer of Record, the onboarding process starts and will take approximately 5 days in our HR and Payroll department.

What requirements would you need to meet for us to become your Employer of Service Provider?

You will need to have a company that meets your home country’s requirements and agree to a 2-month salary deposit for a fixed-term employment contract.

What documents will you need to start the Employer of Record Process?

You will need your employee’s personal documents (KTP, KK, BPJS cards) as well as employee benefits information such as salary and other benefits.

What is the difference between PEO and EOR?

A comparable service to EoR is Professional Employer Organization (PEO). EoR’s and PEO’s are similar in that they both assist with outsourcing human resources services, but differ in legal responsibilities.

While a PEO may also assist you in recruitment, your company will still hold employee contracts. This means your company will still bear all legal liabilities when hiring but a PEO takes on your employees and are responsible for anything HR-related.

In contrast, an EoR is the legal employer of those your company hires, meaning they hold employment contracts - EoR’s put your business and employees on their payroll.

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